(Adds U.S. market open, changes dateline; previous LONDON)
* British PM May announces resignation, pound bounce fades
* Trump: 'Dangerous' Huawei could be in China trade deal
* Dollar off 2-year highs; oil retreats
* World FX rates in 2019
By Herbert Lash
NEW YORK, May 24 (Reuters) - World equity markets rebounded on
Friday from heavy selling the previous day after President Donald
Trump said U.S. complaints against China's Huawei Technologies might
be resolved within the framework of a Sino-U.S. trade deal.
But tensions remained high, with China accusing U.S. Secretary of
State Mike Pompeo of fabricating rumors after he said Huawei's
chief executive was lying about the telecom network gear maker's ties
to the Chinese government.
While Trump on Thursday said a trade deal could resolve U.S.
complaints against Huawei, he also called the Chinese
telecommunications giant "very dangerous," suggesting
resolution of the trade spat and stand-off over Huawei is not near.
"Today's action is mostly based on sentiment because the
overall market is trading at a full valuation," Rahul Shah, chief
executive of Ideal Asset Management in New York, said of the equity
market. It remains highly susceptible to headline risk, Shah said,
though investors took in stride a Commerce Department report that said
new orders for U.S.-made capital goods fell more than expected in
The report also showed orders were not as strong as previously
thought in March and shipments were weak over the last two months,
further evidence that manufacturing and the broader U.S. economy were
slowing after a growth spurt in the first quarter driven by exports
and a buildup of inventories.
The pan-European STOXX 600 index rose 0.50% and MSCI's gauge of
stocks across the globe gained 0.37%.
On Wall Street, the Dow Jones Industrial Average rose 72.25
points, or 0.28%, to 25,562.72. The S&P 500 gained 4.92 points,
or 0.17%, to 2,827.16 and the Nasdaq Composite
added 23.54 points, or 0.31%, to 7,651.83.
The dollar edged away from two-year highs set on Thursday after
the weak U.S. manufacturing activity data sparked worries that the
trade conflict with China may hurt the world's largest economy and
erode the currency's safe-haven status.
Against a basket of six major currencies, the dollar was down
0.22% at 97.641 and noticeably off a two-year high of 98.371 the
The euro rose 0.18% to $1.1200 while the Japanese yen
strengthened 0.22% versus the greenback at 109.35.
U.S. Treasury yields rose after Thursday's sharp falls, with
investors booking profits after a surge in government bond prices and
ahead of a long U.S. holiday weekend.
Trump's remarks about Huawei and the trade dispute helped fuel the
decline in bond prices.
Benchmark 10-year U.S. Treasury notes fell 7/32 in price to
push yields up to 2.3220%.
U.S. markets will close on Monday for Memorial Day, a federal holiday.
British Prime Minister Theresa May's resignation briefly sent
sterling fluctuating wildly. It popped up nearly half a percent
against the dollar after the announcement but the gains were
short-lived and it subsequently traded back at $1.2672
, and not far off the day's lows versus the euro.
On Thursday, the pound suffered its 14th consecutive day of losses
against the euro, its longest losing streak on record.
Sterling was up 0.33% against the dollar at $1.2696.
Oil see-sawed after early gains and remained on track for its
biggest weekly drop of the year, pressured by rising inventories and
concern about slowing economic growth.
U.S. crude inventories rose to their highest since July 2017,
suggesting ample supplies in the world's top consumer
, with prices also hit by worries that the U.S.-China trade conflict
is developing into a more entrenched dispute.
Brent crude , the global benchmark, rose 6 cents to $67.82 a
barrel. U.S. West Texas Intermediate crude traded flat at $57.91.
MSCI World Asia as of May 24 2019
(Reporting by Herbert Lash; additional reporting by Karin Strohecker,
Dhara Ranasinghe, Tomo Uetake and Noah Sin; editing by John
Stonestreet and Dan Grebler)
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